ProShares requests approval from SEC for Ethereum ETF to be listed on NYSE
ProShares, a well-known provider of exchange-traded funds (ETFs), has submitted a request to list and trade spot Ethereum (ETH) ETF shares on the New York Stock Exchange (NYSE).
As per the filing with the United States Securities Exchange Commission (SEC), the ProShares Ethereum ETF will utilize Coinbase Custody Trust Company for ETH custody. The company emphasized that it and its affiliates will not participate in activities related to Ethereum staking.
Reports from Crypto.news indicate that prospective spot Ethereum ETF issuers have adjusted their 19b-4 and S-1 filings to exclude staking elements. These changes are aimed at aligning with the SEC’s stance on staking for spot Ethereum ETFs.
Nevertheless, the approval of these ETFs without staking features may deter investors seeking additional yield from staking rewards. Typically, individuals who purchase, hold, and stake ETH can earn staking rewards, resulting in extra yield. The exclusion of the staking component implies that spot Ethereum ETFs will not provide these supplementary benefits to investors.
The SEC has a 45-day window, extendable to 90 days, from the date of notice publication to respond to the filing. Given that ProShares’ spot ETH ETF was filed on June 6, 2024, approval could potentially be granted by late July 2024.
This proposal comes on the heels of ProShares’ recent launch of two Ethereum-linked ETFs: ProShares Ultra Ether ETF (ETHT) and ProShares UltraShort Ether ETF (ETHD), targeting 2x and -2x daily ETH returns, respectively. Both ETFs are scheduled to be listed on the NYSE on Friday, June 7.
It is worth noting that unlike some major asset management firms such as Blackrock, Grayscale, and Fidelity, ProShares has not pursued a spot Bitcoin (BTC) ETF. ProShares made headlines in 2021 for introducing the first Bitcoin-linked ETF, the Bitcoin Strategy ETF (BITO), which invests in futures contracts.
Approval from the SEC is required for both filings to officially trade spot Ethereum ETFs in the market. The approval granted in May was specifically for the 19b-4.
Experts predict that the final approval for these ETFs could potentially come in July 2024. These products are anticipated to offer investors increased flexibility and strategic options, allowing for more precise maneuvering in the volatile crypto market.
On a different note, the Bitcoin ETF has attracted $2.4 billion after experiencing consecutive inflows for the past 15 days, as highlighted by Senior Bloomberg ETF analyst Eric Balchunas in a recent X post.
